WGU D216 BUSINESS LAW FOR ACCOUNTANTS EXAM
2025|160 QUESTIONS WITH 100% ACCURATE SOLUTIONS
1. The duties we owe others imply that humans have fundamental rights. This
________ is foundational to Western culture and asserts that whether a
business decision is ethical depends on how the decision effects the
rights of all involved.
Situational realism
Ethical relativism
Principle of rights
Rule of reason
Cost-benefit analysis
2. Preferred stock is called preferred because it usually has two
preferences over common stock. These preferences relate to:
The preemptive right and voting rights.
dividends and voting rights.
Par value and dividends.
Dividends and distribution of assets if the corporation is
dissolved.
3. What does the term 'seasonably' refer to in legal contexts?
After a reasonable delay.
Only during business hours.
At any time without restriction.
Within a specified time period.
,4. In a negotiation, if Party A makes an offer of $100, and Party B responds
with an offer of $90, what has Party B created?
A proposal
An acceptance
A rejection
A counteroffer
5. What is the definition of 'tender' in a legal context?
A legal document outlining the terms of a contract.
An unconditional offer to perform an obligation by a person
who is ready, willing, and able to do so.
A negotiation process between two parties.
A formal request for payment in a contract.
6. If a company is planning to launch a new product, which of the following
evaluations should they prioritize to mitigate potential risks?
The historical sales data of similar products.
The marketing strategy for the product launch.
The legal implications of each decision.
The aesthetic design of the product.
7. What is the definition of a mechanic's lien?
A legal claim against a property to secure payment for services
rendered.
A type of contract that guarantees payment for construction work.
A lien placed on property due to unpaid taxes.
, A statutory lien on the real property of another, created to
ensure payment for work performed and materials furnished in
the repair or improvement of real property.
8. Describe the priority of preferred stockholders in the event of a
corporation's dissolution.
Preferred stockholders have priority over common stockholders
in the distribution of assets.
Preferred stockholders do not receive any assets during
dissolution.
Preferred stockholders are last to receive any assets during
dissolution.
Preferred stockholders have equal priority with common
stockholders.
9. Describe the implications of revocation in the context of contract law.
Revocation is the process of negotiating new terms for a contract.
Revocation is a formal acceptance of the offer by the offeree.
Revocation signifies that the offeror no longer intends to enter
into a contract, which can prevent the offeree from accepting
the offer.
Revocation allows the offeree to modify the terms of the offer
before acceptance.
10. If a borrower defaults on their mortgage and has mortgage insurance,
what is the likely outcome for the lender?
The lender will initiate foreclosure without any financial
protection.
The lender will receive compensation for the losses incurred.
The lender will lose all invested funds without any recovery.
, The lender will have to forgive the loan entirely.
11. What is the definition of 'power of attorney'?
A formal request to a court to initiate bankruptcy proceedings.
A legal document that allows an individual to make medical
decisions on behalf of another.
A contract that outlines the terms of a business partnership.
Authorization to act as another's agent either in specified
circumstances (special) or in all situations (general).
12. What is a stock warrant?
A financial instrument that represents a company's debt.
A legal document that transfers ownership of shares.
A type of contract that outlines the terms of a loan.
A certificate that grants the owner the option to buy a given
number of shares of stock.
13. Describe the taxation process for a corporation's profits and dividends.
A corporation pays taxes only on the dividends received by
shareholders.
A corporation is taxed on its profits, regardless of whether it
retains them or distributes them as dividends.
A corporation does not pay taxes on retained earnings.
A corporation is only taxed when it distributes dividends to
shareholders.
14. In a scenario where a bankruptcy judge is overwhelmed with cases, how
might the role of the U.S. trustee be crucial?
By managing the sale of the debtor's assets directly.
2025|160 QUESTIONS WITH 100% ACCURATE SOLUTIONS
1. The duties we owe others imply that humans have fundamental rights. This
________ is foundational to Western culture and asserts that whether a
business decision is ethical depends on how the decision effects the
rights of all involved.
Situational realism
Ethical relativism
Principle of rights
Rule of reason
Cost-benefit analysis
2. Preferred stock is called preferred because it usually has two
preferences over common stock. These preferences relate to:
The preemptive right and voting rights.
dividends and voting rights.
Par value and dividends.
Dividends and distribution of assets if the corporation is
dissolved.
3. What does the term 'seasonably' refer to in legal contexts?
After a reasonable delay.
Only during business hours.
At any time without restriction.
Within a specified time period.
,4. In a negotiation, if Party A makes an offer of $100, and Party B responds
with an offer of $90, what has Party B created?
A proposal
An acceptance
A rejection
A counteroffer
5. What is the definition of 'tender' in a legal context?
A legal document outlining the terms of a contract.
An unconditional offer to perform an obligation by a person
who is ready, willing, and able to do so.
A negotiation process between two parties.
A formal request for payment in a contract.
6. If a company is planning to launch a new product, which of the following
evaluations should they prioritize to mitigate potential risks?
The historical sales data of similar products.
The marketing strategy for the product launch.
The legal implications of each decision.
The aesthetic design of the product.
7. What is the definition of a mechanic's lien?
A legal claim against a property to secure payment for services
rendered.
A type of contract that guarantees payment for construction work.
A lien placed on property due to unpaid taxes.
, A statutory lien on the real property of another, created to
ensure payment for work performed and materials furnished in
the repair or improvement of real property.
8. Describe the priority of preferred stockholders in the event of a
corporation's dissolution.
Preferred stockholders have priority over common stockholders
in the distribution of assets.
Preferred stockholders do not receive any assets during
dissolution.
Preferred stockholders are last to receive any assets during
dissolution.
Preferred stockholders have equal priority with common
stockholders.
9. Describe the implications of revocation in the context of contract law.
Revocation is the process of negotiating new terms for a contract.
Revocation is a formal acceptance of the offer by the offeree.
Revocation signifies that the offeror no longer intends to enter
into a contract, which can prevent the offeree from accepting
the offer.
Revocation allows the offeree to modify the terms of the offer
before acceptance.
10. If a borrower defaults on their mortgage and has mortgage insurance,
what is the likely outcome for the lender?
The lender will initiate foreclosure without any financial
protection.
The lender will receive compensation for the losses incurred.
The lender will lose all invested funds without any recovery.
, The lender will have to forgive the loan entirely.
11. What is the definition of 'power of attorney'?
A formal request to a court to initiate bankruptcy proceedings.
A legal document that allows an individual to make medical
decisions on behalf of another.
A contract that outlines the terms of a business partnership.
Authorization to act as another's agent either in specified
circumstances (special) or in all situations (general).
12. What is a stock warrant?
A financial instrument that represents a company's debt.
A legal document that transfers ownership of shares.
A type of contract that outlines the terms of a loan.
A certificate that grants the owner the option to buy a given
number of shares of stock.
13. Describe the taxation process for a corporation's profits and dividends.
A corporation pays taxes only on the dividends received by
shareholders.
A corporation is taxed on its profits, regardless of whether it
retains them or distributes them as dividends.
A corporation does not pay taxes on retained earnings.
A corporation is only taxed when it distributes dividends to
shareholders.
14. In a scenario where a bankruptcy judge is overwhelmed with cases, how
might the role of the U.S. trustee be crucial?
By managing the sale of the debtor's assets directly.
